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Shell73(Newbie)Newbie
30 Apr 2025

We have an investment property, that we bought 18mths ago for our daughter and her family to live in. The house was built in the 60s and relocated in the 90s, most of the power points were installed sideways (earth pin horizontal), some with broken switches, there's a light in the shower instead of centred in the bathroom, the stove is wired into the fridge circuit instead of its own and no cut off switch installed, just to name a few non compliant items found. We currently have an electrician making everything compliant and safe, adding safety switches and getting everything working properly (fan controllers half working, toilet light fitting not working) etc.


My question is this - can we claim this as repair/maintenance or is it capital works or a mix of both? I'm asking so that if I need a more detailed invoice, I can ask now rather than after the fact.


Thank you for your help with this.


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Taxduck(Taxicorn)Taxicorn
1 May 2025

They are not deductible under repairs/maintenance as they are defects that were existing at the time of purchase. Link below provides information

Rental property - repairs or capital expenses? | Australian Taxation Office

Question is whether they are capital works or initial repairs that can't be claimed as a deductible expense.

From the link, "Work going beyond remedying defects, damage or deterioration and improves the function of the property are improvements". If they are improvements then the expense is deductible under capital works. If it is simply remedying defects then the expense is not deductible and is part of the cost base for CGT purposes.

You probably have a mix of both of the above.

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Most helpful reply

Taxduck(Taxicorn)Taxicorn
1 May 2025

They are not deductible under repairs/maintenance as they are defects that were existing at the time of purchase. Link below provides information

Rental property - repairs or capital expenses? | Australian Taxation Office

Question is whether they are capital works or initial repairs that can't be claimed as a deductible expense.

From the link, "Work going beyond remedying defects, damage or deterioration and improves the function of the property are improvements". If they are improvements then the expense is deductible under capital works. If it is simply remedying defects then the expense is not deductible and is part of the cost base for CGT purposes.

You probably have a mix of both of the above.

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Can I claim electrical work on investment property to make house compliant | ATO Community